Fertilizer producers have benefited from high U.S. crop exports, including record-large corn sales to China. With crop prices touching multi-year highs, farmers are poised to plant more acres in 2021 and would require more fertilizers for their plantings.
“Agriculture fundamentals began to improve in late 2020 and we are starting to see the benefit to our business from this cyclic recovery,” Chief Executive Officer Chuck Magro said.
Rival Mosaic also topped Wall Street estimate for quarterly profit as its potash sales improved, sending its shares up 2.4 per cent in extended trade.
Improving fertilizer markets during the second half of 2020 reflected the tightening supply and demand balance in both potash and phosphates, Mosaic said.
Potash sales volumes increased nearly 29 per cent due to strong domestic and offshore demand, supported by improved global crop prices, increased planted acreage in the United States and strong fall application in North America in anticipation of higher planting in 2021, Nutrien said in a statement.